Partnership and Formation of a Partnership Deed

This project contains a brief description of partnership and the formation of a partnership deed. This also contains a business overview,

1. St. Joseph’s Boys’ High
School
Commerce Project
ISC:2020-2021


Submitted by:

Name- Ansh Shah

Class & Section- 11 ‘C’


Submitted to:

Mrs Nikita George
Mrs Megha Shekar

2. (Commerce Teachers)

CERTIFICATE
ST.JOSEPH’S BOYS’ HIGH SCHOOL
#27, Museum Rd, Shanthala Nagar, Ashok Nagar, Bengaluru, Karnataka 560025


Name:- Ansh Shah
Standard:- XI Commerce
Project:- 1) Assume you are starting a partnership firm with your friend/friends.
Develop a business plan covering the following aspects: − Formation of this partnership
firm – rules and steps that would be followed including the partnership deed − Choice
of types of partners involved and your justification for the same.

2) Visit a company that is involved in e-business (which offers online services) or a
consultancy, which helps in developing websites for such companies. Study different aspects they
keep in mind while preparing business plans for e-business.

This is to certify that ANSH SHAH_______________________
has completed the project in ACCOUNTS for the academic year 2019-2020,
in fulfillment of the board requirement.
Internal Examiner’s Signature:
External Examiner’s signature:

3. ACKNOWLEDGEMENT

I want to communicate my uncommon thanks of appreciation to my
educator Mrs Nikita George and Mrs Megha Shekar just as our
principal Fr. Sunil Fernandez who gave me the brilliant chance to do
this magnificent task on the topic
‘ Assume you are starting a partnership firm with your
friend/friends. Develop a business plan covering the following
aspects:
− Formation of this partnership firm – rules and steps that would be
followed including the partnership deed
− Choice of types of partners involved and your justification for the
same.’, which additionally helped me in doing a great deal of research
and I came to know about such a significant number of new things, I am
extremely grateful to them.

4. INDEX

1)Partnership
a) Meaning and Features of partnership


2)Beat and Boost
a) Business Overview
b) Problem
c) Solution
d) Target Audience
e) Competition


3)Formation of Partnership
a) Partnership Deed

5. Partnership

What is meant by Partnership?
A partnership is a voluntary association of 2 or more persons who agree to carry on some
business jointly and share its profits and losses. They combine their funds and skills to carry
on business together.
“Partnership is the relation between persons who have agreed to share profits of a
business carried on by all or any one of them acting for all” ---The Partnership Act.

Essential features of Partnership Firms.
 Two or more persons- Minimum persons required for a partnership are 2 and the
revised maximum limit regardless of any types of partnership firm is 50.
 Agreement- Partnership is the outcome of an agreement between persons. The
agreement may be oral or in writing but it must satisfy all the essentials of a valid
contract.
 Lawful business- A partnership firm can be formed only to carry on a business. Illegal
acts such as theft, dacoity, smuggling, etc., cannot be called a partnership.
 Sharing of Profits-The agreement between the partners must be to share profits.
There can be no partnership without the intention of mutual gain.
 Mutual agency- Every partner is an implied agent of the other partners and the firm.
Each partner is liable for the acts performed by other partners on behalf of the firm.
 Utmost good faith- Every partner is expected to act in the best interest of other
partners and of the firm as a whole. He must render true accounts and make no
secret profits from the business.
 Unlimited Liability- If the assets of the firm are not sufficient to pay the debts,
personal property of each partner can be brought into the business to pay the
creditors of the firm.
 Transfer of interest- Prior consent of all the partners in the partnership is required
to transfer the shares of a partner.
 Joint ownership and control- All the partners in a partnership are joint owners and
jointly control the firm.
 Separate entity- A partnership has no legal entity separate from the partners.

6. Beat&Boost
Plug it! Listen to the beat! Feel the boost!
Business Overview
An Indian based Partnership Headset company aimed at providing general
public access to Dynamic and Melodious music for their best bang for the
buck.
Problem
Prices of Headsets and Wireless earphones are expensive in India due to high
transportation and tax charges incurred from other countries i.e. Apple
Earphones are cheaper in the USA because these are being manufactured
there, whereas the same is expensive in India mainly due to transportation
expenses, the price varies by approx- Rs.20000.
Solution
BEAT & BOOST plans to solve the problem by setting up manufacturing
industries in the domestic country(India) which will greatly reduce the price of
the product, furthermore, the industries will be set up in villages next to
metropolitan cities, which will increase the employment of people in villages
and help the economic growth of the country.

7. Target Market
Our target audience is youth and young adults of the country between the age
group 16-29 years as they are the one who will drive the music culture ahead.
Competition
We plan to overcome our competition such as Sony, Boat, Apple by sponsoring
and advertising our brand and products at concerts such as Sunburn and on
various social media platforms like Instagram, Snapchat, Twitter, Facebook,
etc. The above methods are best suited to attract our target audience and are
cost-efficient.

8. Formation of This Partnership Firm

PARTNERSHIP DEED


I. Name of the firm- The Firm will conduct its daily business under the name ‘Beat &
Boost’ but in case of any circumstance, the name of the firm can be changed on the
mutual consent of partners.

II. Nature of the business- This firm manufactures Headsets as of now but it may be
expanded or changed with the mutual consent of the partners.

III. Manufacturing units- Davengere, Karnataka

Nashik, Maharashtra


IV. Commencement of Business- The business will commence from 1
st
December 2020.

V. Capital- Each partner will invest 2,00,000 in the business. In case of any situation, the
partners can invest in the business without any obligation.

VI. Head Office Of the Firm-The head office of the firm is located at Bangalore. In any case,
it can be changed with the mutual consent of all the partners in the best interest of the
business.


VII. Profit & Loss Distribution Percent-The profit and loss distribution of each partner is :
 Kushal Jiyash-………………………..Profit %=25%; Loss%=25%
 VivekVidhisan-……………………..Profit %=25%; Loss%=25%
 Vinay Dunga-………………………… Profit %=25%; Loss%=25%
 Ansh Shah-……………………………. Profit %=25%; Loss%=25%

9. VIII. Management and Control of Business-All the partners will have equal control over the
management of the firm as managing partners. In case, if a managing partner is not able
to perform as per the expectations of the firm, other partners can decide with mutual
consent for a change in the managing partner.

IX. Money Withdrawal from the Firm-Money can be withdrawn by the partners any
number of times, but the maximum amount limit per month is 1,00,000

X. Financial Backing-The partners are permitted to take loans from their friends or families
and any financial Organization for further development, progress and expansion if the
firm.


XI. Accounting Year-The partners will conduct their business from April 1
st
to March 31
st
.

XII. Accounting Books-The firm can record its transactions in one or more accounting books.
The firm can also hire auditors to inspect books of accounts and any important or
necessary document can be provided.


XIII. Profit and Loss and preparation Balance Sheet-At the end of the fiscal year the partners
are obliged to make a Profit and loss statement and balance sheet of the firm to
ascertain the financial position and distribution of the net profit or loss to partners of
the firm.

XIV. Death or Retirement of a Partner-If any partner dies, other partners can continue the
business or dissolve the partnership. In any of the cases, the heir or heiress of the
deceased partner will receive a proportion of the deceased partner. In the case of
retirement of a partner, will be required to submit a written notice to other partners at
least 50 days prior. The other partners can continue or dissolve the business and figure
the proportion amount to be received by the retired partner.


XV. Duties and Responsibility-Every partner is anticipated to work in harmony and honestly
towards the business of the firm. Any loss incurred due to omission of any partner he
will be required to repay the same to the firm.

XVI. Dissolution of business or partnership-In any circumstance, if the partners decided to
dissolve the business, each partner is bound to receive their proportionate amount and
distribution of the capital concerning the investment made by each partner.

10. XVII. Nonattendance of any partner-In case of any circumstance, if a partner is absent for a
short or long period other partners can decide on any matter on behalf of the absent
partner as every partner is an implied agent of other partners
.
XVIII. Amendment of the Deed-The partnership deed can be amended in future with the
mutual consent of other partners for the best interest of the firm.

11. Between:

 Kushal Jiyash
Date of Birth is 20
th
of August 2000

Address- #1,3
rd
Floor, Hatti Apartment, Gol Gul Road, Basavangudi,

Bangalore-560029, Karnataka.
---------------Managing Partner

 Vivek Vidhisan
Date of Birth is 1
st
of April, 2000
Address-#2,1
st
floor, Arihant Homes, Jain Road, V.V Puram
Bangalore-560027, Karnataka.
---------------Managing Partner

 Vinay Dunga
Date of Birth is 13
th
of Jan, 2000
Address-#12, RidhiSidhi, Laxmi Road, Rajajinagar
Bangalore-560019, Karnataka.
---------------Managing Partner


 Ansh Shah
Date of Birth is 28
th
of Feb, 2000
Address-#4,2
nd
floor, SankeshwarBasappa Road (End), Shantinagar
Bangalore-560009, Karnataka.

12. ---------------Managing Partner



After examining all the aspects and for the best interest of the firm all the partners
mentioned above are active/managing partners so that the firm can prevent the
crisis of investment to some extent and distinct ideas by partners will help the firm
to grow at a good pace.

The partners mentioned above have successfully signed the partnership deed and
have agreed to follow the rules and regulations of this partnership






Name of the Partner Signature of the partner
Kushal Jiyash

Vivek Vidhisan

Vinay Dunga

Ansh Shah

13. Bibliography

 ISC Commerce Volume-1 for Class XI by C.B. GUPTA
 Investopedia.com
 Articles.bplans.com
 Chartered club.com